| Types of Ea | | | | Scalping Robot |
| Robots trade with a set of ideology and it is important | | | | - Work extremely well during certain times of the day |
| that the user understands it. | | | | only |
| In circumstances when the user are unaware of how | | | | - Take profit is usually a few pips only |
| the robots are traded, the maximum draw-down* will | | | | - Stop loss level is set many times more than their |
| be unknown to them. All profitable trading robots are | | | | take profit level |
| sure to make losing trades and when the users are | | | | - Extremely low risk:reward ratio |
| faced with 5 consecutive losing trades, they will be | | | | - However, they are compensated by very high |
| experiencing great fear and may stop them from | | | | accuracy trades (80% winners) |
| following the system. | | | | - Trades made are usually within very shot period of |
| (Maximum draw-down: This is the largest overall drop | | | | time (in mins to a few hours) |
| in the investment value which occurred in a given | | | | Trending Robot |
| period before it returned to its previous high. Large | | | | -High risk to reward ratio |
| maximum draw-downs indicate higher risk.) | | | | - Low accuracy trades (40% winners) |
| Had they known how the system traded, how it | | | | - Trades are entered whenever there are signs of a |
| performed the past 10 years and the maximum | | | | breakout (means you will have many losing trades in |
| consecutive losses, they will not have panicked. They | | | | conditions of a false breakout or ranging conditions) |
| will be well aware and mentally prepared to accept | | | | - Due to high risk to reward ratio, one winning trades |
| the losses. If the system traded for the last 10 years | | | | can make back all of the losing trades |
| have a maximum consecutive loss of 5, the | | | | - Usually do not have a fixed take profit, take profit is |
| well-informed user will be expecting for a win with the | | | | trailed by a moving average or 2 bar low/high |
| next trade and not fearing the system may have stop | | | | - Trade made can last for many days |
| working. | | | | Feel free to use this article on your website or ezine |
| Thus, knowing how the robots trade is crucial to Your | | | | as long as the following information about author |
| Trading. | | | | website is included. |
| Here, we examine a few trading ideologies | | | | |